ATHENS, Ga., Nov. 4, 2010 /PRNewswire/ -- Grubb & Ellis
Healthcare REIT II, Inc. today announced that it has acquired
Athens Long-Term Acute Care Hospital, a single-story,
32,000-square-foot, Class A single-tenant medical facility in
Athens. The acquisition
closed on Oct. 29.
Located at 775 Sunset Drive, Athens Long-Term Acute Care
Hospital is approximately one mile from Athens Regional Medical
Center, the region's leading healthcare provider and a significant
source of referral patients. Athens Long-Term Acute Care
Hospital is the only long-term acute care hospital serving the more
than one million residents of northeast Georgia.
Built in 2008, Athens Long-Term Acute Care Hospital is leased by
Landmark Real Estate Holdings, LLC, which signed a long-term lease
through 2025. The Athens facility is the third of a
$42 million, four-property portfolio
of regional long-term acute care hospitals being acquired by Grubb
& Ellis Healthcare REIT II. Similar facilities in
Cape Girardeau and Joplin, Mo. were acquired by the REIT on
Aug. 12 and Aug. 31, while a fourth facility in Columbia, Mo. is currently under contract.
"Long-term acute care hospitals such as the four we are
acquiring in Missouri and
Georgia are attractive additions
to the portfolio of Grubb & Ellis Healthcare REIT II," said
Danny Prosky, president and chief
operating officer of the REIT. "They enjoy very limited
competition, have strong relationships with major healthcare
systems, and provide stable long-term income that is immediately
accretive and supportive of our investor distributions."
Creative Health Capital, LLC represented the seller, White Oaks
Real Estate Investments of Georgia, LLC, an unaffiliated third party, in
the transaction. Grubb & Ellis Healthcare REIT II
financed the acquisition using $12.3
million in borrowings under its line of credit with Bank of
America, N.A and cash proceeds received from its offering.
About Grubb & Ellis Healthcare REIT II
Grubb & Ellis Healthcare REIT II, Inc. intends to qualify as
a real estate investment trust that seeks to preserve, protect and
return investors' capital contributions, pay regular cash
distributions, and realize growth in the value of its investments
upon the ultimate sale of such investments. Grubb & Ellis
Healthcare REIT II is seeking to raise up to approximately
$3 billion in equity and to acquire a
diversified portfolio of real estate assets, focusing primarily on
medical office buildings and other healthcare-related facilities.
Grubb & Ellis Healthcare REIT II is sponsored by Grubb &
Ellis Company (NYSE: GBE). Grubb & Ellis is one of the largest
and most respected commercial real estate services and investment
companies in the world. Grubb & Ellis Company's 6,000
professionals in more than 100 company-owned and affiliate offices
draw from a unique platform of real estate services, practice
groups and investment products to deliver comprehensive, integrated
solutions to real estate owners, tenants and investors. The firm's
transaction, management, consulting and investment services are
supported by highly regarded proprietary market research and
extensive local expertise. Through its investment subsidiaries, the
company is a leading sponsor of real estate investment programs
that provide individuals and institutions the opportunity to invest
in a broad range of real estate investment vehicles, including
publicly registered non-traded real estate investment trusts
(REITs), mutual funds, separate accounts and other real estate
investment funds. For more information, visit
www.grubb-ellis.com.
This release contains certain forward-looking statements
(under Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended)
with respect to the success of Athens Long-Term Acute Care
Hospital, its stable income, whether such stable income is
immediately accretive and supportive of our investor distribution,
its ability to capitalize on limited competition and whether its
proximity to Athens Regional Medical Center is beneficial. Because
such statements include risks, uncertainties and contingencies,
actual results may differ materially from those expressed or
implied by such forward-looking statements. These risks,
uncertainties and contingencies include, but are not limited to,
the following: the strength and financial condition of Athens
Long-Term Acute Care Hospital and its tenant; uncertainties
relating to the financial strength of Athens Long-Term Acute Care
Hospital, Athens Regional Medical Center and the local economy of
the city of Athens; uncertainties
relating to changes in general economic and real estate conditions;
uncertainties regarding changes in the healthcare industry; the
uncertainties relating to the implementation of our real estate
investment strategy; and other risk factors as outlined in the
company's prospectus, as amended from time to time, and as detailed
from time to time in our periodic reports, as filed with the U.S.
Securities and Exchange Commission. Forward-looking
statements in this document speak only as of the date on which such
statements were made, and we undertake no obligation to update any
such statements that may become untrue because of subsequent
events. We claim the safe harbor protection for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995.
THIS IS NEITHER AN OFFER TO SELL NOR AN OFFER TO BUY ANY
SECURITIES DESCRIBED HEREIN. OFFERINGS ARE MADE ONLY BY MEANS
OF A PROSPECTUS OR OFFERING MEMORANDUM.
SOURCE Grubb & Ellis Healthcare REIT II, Inc.